Eng - IOI Group

chairman’sstatement cont’dREVIEW OF RESULTSGroup operating results were significantly higher than in FY 2002 with positive improvements across all businesses andwere especially driven by a 132% jump in plantation earnings.In line with a 36% higher CPO price realised, a 34% increase in CPO output arising from the 5 1 /2 months contribution fromthe newly acquired Pamol estates as well as a 12% improvement in CPO oil yield, plantation segment’s operating profitincreased by 132% to RM530.3 million for the financial year under review, up from RM229.0 million the previous year.On our property business, the lacklustre property market in the first three quarters of the financial year under reviewaffected sales take-up on new launches. The housing sector however experienced a strong rebound in the fourth quarter assentiments turned positive with the end of the SARS outbreak and the Iraq war. The overall operating profit achieved forproperty development and investment activities for FY 2003 was RM255.2 million, marginally lower than the RM257.8million achieved in the previous year. Profits from development was in fact RM10.3 million or 4% higher than the previousyear but it was offset by lower contribution from the property investment sector because of a revaluation deficit of RM14.1million in respect of an investment property in Singapore.With the rationalisation exercise undertaken during the previous financial year which saw the disposal of the Group’sinterests in industrial gas business and a steel piping company both being non-palm related activities, the Group’smanufacturing activities now comprise palm oil refining, oleochemicals, specialty oils and fats which are all palm-based,down-stream manufacturing activities.IOI Corporation BerhadAnnual Report 20036